Question

Which of the following methods to save for education may not be available for use at a private or out-of-state school?

Answer 1

Answer:

Pre-paid plan

Explanation:

A pre-paid plan is a type of 529 plan which avails an individual or account holder (sponsor) to make payment in advance with respect to educational expenses that would be incurred by a student (beneficiary) in the future. This plan is mainly sponsored by state agencies or the state itself.

Basically, it is often considered to be an effective way to manage and save for the future educational expenses of a student (beneficiary).

Hence, pre-paid plan is a method to save for education but may not be available for use at a private or out-of-state school